Artistic Background

Six400 Creates a New Financial Product with AutoMate That Streamlines Bank Operations

Six400 Financial Services Six400 Financial Services
Terry Buske, President

Background

Six400 Financial Services LLC (Six400) is a technology company which provides automated solutions to complex back office processes for banks and credit unions. Their solutions are unique and provide greater value because of their extensive experience in the practice of Six Sigma, Lean and Triz - the process improvement philosophies that produced notable results for many global companies like GE, Toyota and Merrill Lynch. Recognizing the need to automate manual overdraft processing at banks and credit unions, Six400 introduced a revolutionary product called Overdraft Advantage[TM] which has been successfully deployed nationwide. As an alternative to increased staffing, banks and credit unions can use Overdraft Advantage to eliminate over 75% of the manual work associated with managing their overdraft protection and/or privilege program. Specifically, Six400's software helps financial institutions increase fee income and significantly reduce their operational costs. Additionally, Six400's performance dashboard reports provide leadership with visibility to vital information needed to increase profits and the necessary oversight to easily comply with regulatory mandates. In short, the new product has been a huge success for both Six400 and its customers.

The Challenge

Terry Buske, President at Six400, and his Partners had extensive knowledge of the operations that power financial institutions, specifically the processes that generates more than $53 billion dollars annually in fees - overdraft services. Terry and his partners knew their company could make these unwieldy manual processes with dozens of touch points and delays between systems, documents, and employees much more efficient. But this knowledge is not that uncommon; many consultants focusing on financial institutions have the same insights.

To be truly successful, Six400 wanted something the consultants don't have - an out-of-the-box technology solution to streamline and automate the costly, manual, delay- and error-prone overdraft processes. They knew that Six400 would have a compelling, competitive advantage if they could bring such a solution to market. Six400's founders challenged their technical team to find software tools and technology that would streamline manual business processes so that they wouldn't have to waste time and money coding a solution from scratch.

The Solution

After months of trials and testing, Terry and his team identified that AutoMate was the ideal solution to round out Overdraft Advantage[TM]; their clients even nick-named it "Robo-Teller". As Terry says, "AutoMate gives us the power and flexibility we need to automate complex financial transactions where there is absolutely no room for error. In one implementation, we witnessed incredible process improvements in all overdraft functions including: charging off an account and automatically reconciling with the general ledger. Employee productivity per account improved by over 90% and re-work (i.e., correcting process errors) decreased by an astonishing 98%."

AutoMate enables Six400 to accomplish a number of critical functions for the bank. First, AutoMate integrates data between a number of mission-critical systems including the core processing system. Second, core processing vendors typically make integrating other applications with their system difficult, and AutoMate enables Six400 to overcome these barriers. Third, by leveraging AutoMate, Overdraft Advantage[TM] helps archive transactional information which is critical for both audits and meeting an array of regulatory requirements. And finally, Overdraft Advantage[TM] automates many of the tedious, repetitive data entry activities that are required. In Terry's words, "Automate provides us with a clear differentiator in helping our bank and credit union clients. We don't just recommend a better way to do the work; our software actually does the work better!"

The Benefits

For Six400, the benefit provided by AutoMate software has enabled the company to create an entirely new financial product that is already generating significant income within two years. Implementations at banks and credit unions across the country are showing significant productivity increases; for institutions that are launching their overdraft program for the first time, increased fee income is averaging 140%. With this success, Six400's Leadership team sees tremendous growth potential. Terry says, "We have only begun to scratch the surface of the thousands of financial institutions in need of this service. According to a recent ABA competitiveness survey; about half of these institutions already have a formal overdraft program in place. They need Overdraft Advantage[TM] to make it generate more fee income, save more money, and reduce risks associated with compliance."

"The other half that is not yet offering their customers overdraft privileges will come to us for a total solution. For these financial institutions, their fee income will typically double, as is normal regardless of what overdraft provider is used. However, with Overdraft Advantage[TM] and Automate, profits are significantly higher because there is no need to hire the additional support staff traditionally needed to run it."

Clients